North Carolina Down Payment Assistance Programs

Online Merchant account - The North Carolina Housing Finance Agency has two excellent programs for First Time Home Buyers. These programs will be the Mortgage Credit Certificate along with the Down Payment Assistance System.

If you meet the requirements for one of these programs and you purchase a house between December 1, 2009 and January 1, 2009, you may also qualify for the $8,000 tax credit only enacted into law.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who has not owned a home in the prior three years. It is exactly the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and moderate incomes. The MCC takes this a step farther.

In case you qualify for the MCC, you are able to claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes. You are able to save around $2,000 on your taxes.

You will have the ability to join this if you do qualify for 2009, for the MCC. This may reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and every other man expected to live in the home who's 18 years of age or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their down payment and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay around $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan summarized above. Like the MCC program, it can be utilized together with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit help, however, can not be utilized in conjunction together with the MCC. This is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Men $45,650 3 Individuals $51,350 4 Persons $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing House $210,000